Combat E-Commerce Fraud, Keep Up with the Latest Tech

Automate Everything

Eighty-three percent of online retailers still rely on manual reviews as part of their fraud-fighting process. Until recently, there was no choice, but modern technology means that there are now more sophisticated methods of stopping fraud for online businesses. The delays in confirming and shipping orders caused by manual reviews (with each review taking five minutes, it's easy to see how it builds up fast) are bad for customer experience and for sales. Moreover, manual reviews cause companies to struggle on weekends and during busy holiday periods, when they ought to be giving the best possible experience to their customers. Businesses can and should start taking advantage of the automation that is now possible, streamlining the purchase process. Some fraud prevention companies even offer an entirely automated solution, eliminating the need for manual reviews.

Whether you sell goods online, via mobile or by phone, you'll likely have noticed an uptick in fraud attempts recently. In fact, the Global Fraud Attack Index™ found that in 2015, online fraud attacks rose by 215 percent — an astonishing amount. Fraudsters are also getting cleverer about how they attack, using technology to speed things up. The same study found that more than 80 percent of U.S. fraud attempts used botnets. In response, retailers are turning to a new generation of faster, smarter fraud prevention solutions.

The rise in fraud was anticipated by industry experts, who noted that EMV (microchip cards) adoption in other countries had helped stop card-present fraud, but also led to significant CNP fraud increases. Fraudsters don't give up just because one kind of fraud has become harder — they just shift to another channel.

At the same time, customer expectations are higher than ever. So the challenge for online retailers is to combine effective fraud prevention that protects their bottom line with great customer experience and high approvals, to increase sales. In this slideshow, Bill Zielke, CMO of Forter, explains some of the key things that e-commerce merchants should be thinking about to achieve the best of both worlds.